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Development Partners

MAJOR DEVELOPMENT PARTNERS: STRATEGIC FOCUS AND KEY ACTIVITIES

A large number of multilateral and bilateral development agencies have operations in the Kyrgyz Republic and comprehensively support the country’s economic development. In general almost all of this support is beneficiary to the development of PPP, as PPP requires a conducive environment and a consistent and cohesive development strategy. Some development partners however also have specific support to the development of PPP either with regard to further strengthening the enabling environment or with regard to the development of specific PPP projects.

ASIAN DEVELOPMENT BANK

In 2008 ADB approved a program cluster entitled Investment Climate Improvement Program (ICIP) that has helped the government improve conditions for sustainable economic growth and employment-generating investments. The cluster program includes policy reforms in business regulations, access to finance, workers’ skills development, and PPPs that are expected to facilitate private investments in the country.
In the period 2011 - 2012 ADB retained a team of consultants under TA7819 with the objective to enable identification of PPP projects and capacity building. The TA resulted in a PPP Law enacted (including institutional design) and an initial PPP Pipeline of 7 projects.
In the period 2013 - 2014 ADB retained a team of consultants under TA8222 as part of subprogram 3 of ICIP with the objective to (i) improve the enabling environment for PPP and (ii) further develop the PPP Pipeline. The results included the establishment of the Project Development Support Fund (PDSF), further strengthening of the legal environment and 16 PPP initiatives under preparation as per May 2014. Also under a separate TA the ADB supported the government in the organization of a high-level PPP Forum in May 2013 to further promote the PPP development.
In August 2014 ADB retained a team of consultants under TA8688 to further strengthen the enabling environment for PPP in the period August 2014 – August 2016.
In 2014 ADB retained an international consultant to draft a Road Sector Strategy to implement the Road and Transport Master Plan 2010 - 2025 that was drafted by CTI Engineering in 2012 as such commissioned by ADB. The Road Sector Strategy will include a Financing and Delivery Plan including if applicable the option of PPP.
In 2013 ADB retained an international consultant to identify and prepare a Performance Based Maintenance (PBM) Contract. PMB is a mode of PPP according the ADB’s strategy on PPP and the Law on PPP in the Kyrgyz Republic. The identified PBM pilot is envisaged to be implemented in 2015.
In 2015 ADB will retain an international consulting firm to prepare a Power Sector Master Plan. The Power Sector Plan should lead to an Investment Program and according Finance and Delivery Plan which could include the option of PPP.
In 2014 ADB commissioned the Economist Intelligence Unit to update the PPP Readiness Assessment of the ADB’s member countries in the Asia-Pacific including the Kyrgyz Republic. The assessment is based on the so-called Infrascope methodology and has been applied for the first time in 2012, when the PPP Readiness in the Kyrgyz Republic was assessed as nascent.

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

In 2013 EBRD retained an international consulting firm to design, appraise and prepare an arrangement for E-ticketing in the city of Bishkek. One of the possible arrangements is a Design Build Finance and Operate arrangement, which is a PPP mode. Final decision making and tendering is envisaged for early 2015.
In 2009 EBRD retained an international consulting firm to identify, design, appraise and prepare small-scale hydropower facilities in the Kyrgyz Republic. In November 2014 the Ministry of Energy consequently initiated a tender for the design, building, operation and supply of electricity of two small hydropower development sites: Orto-Tokoyskaya SHPP (20MW) and Tortgulskaya SHPP (3MW)
THE KFW
In 2013 KfW approved funding for Feasibility Studies for the development of a Central Laboratory and Hemodialysis Units through a PPP arrangement. The tender was initiated by the Ministry of Health end of December 2013 though canceled in August 2014 due to administrative problems. It is envisaged that the Feasibility Studies will be re-tendered in 2015. 

International Finance Corporation

In 2014 IFC agreed a Memorandum of Understanding with the Ministry of Health to provide transaction advisory services for the implementation of 2 possible PPP projects i.e. the aforementioned Central Laboratory and Hemodialysis Units. IFC will also support the Ministry of health in managing the respective Feasibility Studies.
In 2014 IFC agreed a Memorandum of Understanding with the Ministry of Energy to provide transaction advisory services for a possible management concession for the energy distribution network. 

Cities development initiative for asia

In 2014 CDIA retained consultants to deliver a Pre-Feasibility Study for the modernization of the Street Lighting system in Bishkek through a PPP arrangement. The findings and recommendations are scheduled for early 2015. 

japan international cooperation agency

In 2014 JICA appointed the University of Toyo to deliver a 2-week training on PPP in Japan for 8 participants. The training is scheduled also for 2015 and 2016.
GIZ
In 2014 GIZ retained an international consulting firm to provide a 5-day PPP training with specific focus on the health care sector and a review of the PPP Framework. Recommendations from this review have been noted by the team of consultants as retained by the ADB for the purpose of strengthening the enabling environment and will be addressed accordingly.

 institutional arrangements and processes for development coordination

In 2014 the development partners actively involved in PPP have initiated informal coordination through regular meetings. The objective of these meetings are to share knowledge and ensure that there is cohesion and no unnecessary overlap in the different support programs. In 2015 these informal meetings are scheduled to be formalized through the establishment of a PPP Coordination Committee. 

Achievements and issues

While aid coordination is strong it remains largely informal, which limits its overall impact. Informal coordination arrangements do exist, with ADB taking the lead to coordinate assistance to key sectors.